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Monday, November 07, 2005

Yahoo Ringing, But Not Sprint

Internet giant Yahoo Inc.'s latest endeavor, a cell phone service, will use the network of Cingular Wireless, a source said Monday.

Its choice of cell phone network operator is a significant one, though to some degree expected.

When well-known brands ranging from "Ma Bell" AT&T to the Virgin retailing empire of Sir Richard Branson wanted to launch a cell phone operation, they would usually deal with Sprint Nextel, the No. 3 U.S. cell phone operator. Just last week, a partnership consisting of cable operators Comcast, Time Warner, Cox Communications and Advance/Newhouse Communications chose Sprint for just such a task.

In a way, Sprint Nextel may be suffering from its success in pioneering the MVNO (mobile virtual network operator) market. By racking up so many deals, some analysts are worried that its network may not be able to handle more of the MVNO load.

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